Environmental Insurance

Environmental Insurance

The purpose of an environmental insurance policy is to fill the insurance coverage gaps created by pollution exclusions in liability and property insurance policies. Because pollution exclusions vary a great deal in property and liability insurance policies, environmental insurance policies vary a great deal as well. Virtually any legal business activity can be insured for a fortuitous pollution loss event under an environmental insurance policy.

Just about any kind of business can be impacted by environmental liabilities. Regardless of size or industry sector, companies can benefit from a wide range of tailored premises-based pollution liability coverages to help manage future, potentially unforeseen exposures. This includes contractors, hospitals, golf courses and various commercial operations.

At a minimum, environmental insurance coverage will apply to losses arising from:

Bodily injury (mirrors and sometimes enhances the definition used in the general liability (GL) policy)

Property damage (mirrors and sometimes enhances the definition used in the GL policy)

Cleanup expenses (usually as required by environmental laws with available enhancements by class of business)

Defenses costs (usually included within the limit of liability)

Common optional coverages include:

Non-owned waste disposal sites

Transportation of pollutants as cargo

Business interruption

Loss of rents

Extra expense

Reputational damage

Midnight dumping on insured locations

Coverage for fungi/bacteria as defined pollutants

Amended definitions of cleanup costs for contaminates that are not regulated as hazardous materials (fungi/bacteria)